American InterContinental University
FINA310-1301A-02: Professor Michael James

Micro Chip Computer Corporation
1. To calculate the percentage growth, one must do the following:
• Find the present year’s sales and the previous year’s sales.
• Subtract the previous year’s sales from the present year’s sales.
• Then, divide the answers by the previous year’s sales.
• To turn it into a percentage, multiply the decimal by 100 (Brooks, 2010).
With that being said, Net Sales for 2004 through 2008 are as follows:
2004: $11,062
2005: $11,933 (11933-11062)*100/11062=7.87%
2006: $9,181 (9189-11933)*100/11933= -23%
2007: $6141 (6141-9181)*100/9181= -33.11%
2008: $8,334 (8334-6141)*100/6141= 35.71%
2009: $9,167.40 (8334*.10) =833.4+8334=$9,167.40
2. The revenue that is expected for 2009 is $9,167.40. According to the annual percentage growth rate, it is not likely that the business will reach its sales prediction. For 2008, the business had a very large growth rate. This business had a small growth rate that was barely more than 2 % of the 10 % goal for 2005, and a somewhat strong negative growth for 2006 and 2007. The sales trend is pointing downwards. Following 2005, the average annual growth rate has been -3.15 % during the last 4 years. According to the financial data sheet, I do not feel that Micro Chip Computer Corporation will achieve a 10 % sales goal for 2009.

1. Current % of Sales 2008/2009 Prediction
Sales $8,334-$10,000
Cost of Sales $5,458 multiplied by 100 and then divided by $8,334 equals 65.5%, 65.5% of $10,000 equals $6,550.
Gross Margin $2,876 multiplied by 100 and then divided by $8,334 equals 34.5 %, 34.5 % of $10,000 equals $3,450.
R&D $525 multiplied by 100 and then divided by $8,334 equals 6.3 %, 6.3% of $10,000 equals $630.
Selling, General, and Administration $691 multiplied by100 and then divided by $8,334